Real Estate: Office Space Leasing Jumps 26% To 13 Million Sq Ft During September 2022 Quarter Houseliv

Office space leasing in India during the September 2022 quarter stood at 13 million square feet (msf), a 26 per cent jump as compared to the corresponding quarter last year. Vacancy levels declined 30 basis points to 16.7 per cent and the demand is likely to cross 50 msf by the end of the year led by pent-up demand, according to a report by Colliers.

“Industrial and warehousing demand stood at 6.7 msf in Q3 2022, highest since Q1 2021. Delhi-NCR accounted for the highest share at 56 per cent, followed by Pune at 16 per cent share. 3PL operators continue to drive demand with 42 per cent leasing share," said the report, titled ‘reQ Real Estate Quarterly Q3 2022’.

Institutional Investments in the Indian real estate market closed at $1 billion during the third quarter of 2022, a 54 per cent jump YoY. The investment volume in 2022 is likely to cross 2021 levels amid the positive business sentiment. 

Several banks have raised their lending rates following the RBI’s repo rate hike. However, improved business confidence and retail spending during the festive season will likely support the demand activity, the report said.

Ramesh Nair, CEO (India) and managing director (market development-Asia) of Colliers, said, “The Indian Real Estate sector has bounced back sooner than expected if the first nine months of 2022 are anything to go by. Office demand has witnessed a twofold rise YoY during YTD 2022 at 40.6 mn sq feet and is likely to cross 50 mn sq ft towards the year-end. However, concerns about the upcoming global recession might trigger some short-term volatility in the market over the next 2-3 quarters. At the same time, the Indian market is relatively resilient and the growing economy will continue to fuel demand across various asset classes."

The report said real estate due diligence can capture a slice of the 300 mn sqft pie of existing and upcoming commercial office buildings. The top-six cities in India have about 120 mn sqft of ageing Grade-A stock, which is more than 15 years old. Due Diligence can help developers and landlords understand the scope of upgradation and achieve higher traction from occupiers, especially in the prime micro-markets of major cities.

“Modern technologies at workplaces can improve operational efficiency as well as employee productivity. Such an investment can reap remarkable benefits and returns for both, the landlord and occupier. They can look at minimum efficiency reporting value (MERV) filtration up to MERV 15 to improve and balance the air quality, and other recognised standards for acceptable IAQ and ventilation," Colliers said in the report.After a gap of two years, return to offices has gathered momentum with ebbing COVID-19 cases, signifying positive occupier confidence. At the same time, about 74 per cent of the occupiers are looking towards distributed workspacesworkspaces as a strategy to shift from location-centric to people-centric workspaces.

Team Houseliv Realty

Why Karnataka's Mysuru is the next real estate hotspot in India

 Mysore  is the second largest city in Karnataka and is popular for its rich heritage, culture and natural beauty. Because of its favourable climate, it is one of the cities in Karnataka that is expanding the quickest. It is on the verge of rapid growth and development in the coming years. The charming city of Mysuru is quickly becoming a real estate hotspot not just in Karnataka but also across the country. Even though Bengaluru is one of the best places to invest in and will continue to be one, the city's hectic lifestyle, unusual traffic, and exceptionally high pollution levels are causing some prospective buyers or investors to think about investing in real estate in other nearby cities. Because of this, there has been a noticeable rise in the number of families choosing to relocate to the peaceful and secure areas of Mysuru.

1. Bengaluru Mysore Corridor

Also known as the NICE Corridor, this 111 km long private tolled highway is perfectly meant to connect Bengaluru and Mysuru, the two largest cities in Karnataka. This corridor will contribute to a reduction in travel time from the recommended 4 hours to just 90 minutes. With a 10-lane road to Bengaluru and access to flights and trains, Mysuru has enormous potential. In addition to being a paradise for builders, Mysuru is now a popular place for consumers to purchase home plots, apartments, and villas.

The Mumbai-Pune Expressway, which cut travel time between the two cities to two hours, helped Pune pick up speed. This corridor may help Mysuru do the same. This led to the growth of Pune's infrastructure as well as several job possibilities. In the Karnataka city of Mysuru, a similar tale is predicted to surface again.

2. Infrastructure

Mysuru is a developing metropolis that has seen most of its growth to date in the areas along the Ring Road. This meets the housing demands of many purchasers, many of whom were drawn to the vast unoccupied parcels of land that were available across the street by a well-maintained infrastructure and several renowned builders. Real estate in this city has already been touched by the Outer Ring Road; other developments like Film City, NICE Corridor, etc. are anticipated to have an even greater impact.

The city boasts of wide roadways within the city that avoids traffic congestion during the day-to-day commute, which also helps in accommodating a larger size of population and on-road traffic when the city expands in the future. The recently launched Mysuru Airport is a welcome addition to the developing city, which currently operates domestic flight services. An upgrade to international flight services is already in the pipeline.

3. Cost of living

Mysuru is considered one of the most cost-effective cities in India when it comes to the standard of living. The day-to-day expenses in the city are way more economic than most metros in the country. The city offers an excellent quality lifestyle on a very affordable budget. Mysuru city is an excellent place to retire since it has lower living costs than Bengaluru, where people across class segments find it difficult to keep up with the daily cost of living.

4. Knowledge Centre

With the University of Mysuru and other reputable educational institutions, Mysuru has long been a better and more well-known education center. Today, the city is home to several nationally and globally recognised educational institutions, such as Visvesvaraya Technical University on Ring Road and Delhi Public School on Bannur Road.

5. Industrial and IT Boom

Mysuru is a well-planned city with excellent infrastructure that can support the tech ecosystem. Mysuru is growing rapidly and is getting closer to the IT city Bengaluru in terms of development. One of the biggest IT clusters in Karnataka has evolved in Mysuru. The state's second-largest exporter of software is in Mysuru. Infosys, Wipro Technologies, Software Paradigms India, and other significant contributors are contributing heavily to the city's strong growth in the IT sector.

6. Master Plan for Mysore 2031

The plan calls for Mysuru Airport development. The Mysore Urban Development Authority (MUDA) further intends to build a Film City, an international convention centre, and lodging options (hotels) close to the airport. All of these will significantly increase the Mysuru real estate market, particularly in the neighbourhoods around the airport.

7. Cleanest city in India

Mysuru has bagged the title of 'Cleanest City in India' recently and this makes the city more desirable for families and people who are planning to settle down. The city follows a scientific solid waste management system that has resulted in not just better roads, but also cleaner air, clean public parks, and cleaner drinking water, among others.

Eshwar N, CEO of G Square Housing said "One of the most affordable cities in India to live in, Mysuru offers its residents everything they could possibly want at a fraction of the cost of Bengaluru. Everything in Mysuru is far less expensive without sacrificing quality, including basic groceries, restaurant meals, housing, and education. With its fast-developing infrastructure along with rapid Industrial and IT expansions, Mysuru is one of the best places to live a peaceful life and invest for prosperous future returns in our country."

Team Houseliv Realty

Consolidation in real estate gathers momentum; listed companies lap up growth opportunities Houseliv

The ongoing consolidation in Indian Real Estate has gathered further momentum, with established and listed real estate developers continuing to gain more market share in terms of sales and Liquidity. Homebuyers increasingly prefer developers with a sound execution track record and financial position, experts said.

The trend is getting accelerated as access to liquidity in the current market environment, where bond yields have already firmed up and continue to head north, is proving to be a key factor in determining delivery timelines, a concern for homebuyers.

“The property sector has been undergoing a major transformation. The business environment is changing rapidly, prompting all the stakeholders to react and adjust accordingly. We have been able to continuously expand our business portfolio with attractive return opportunities owing to the ongoing consolidation in the market.”

Sunteck recently acquired a 7.5-acre land parcel in Mira Road’s Beverly Park locality through a joint development agreement. The project is estimated to have development and revenue potential of around 2.5 million sq ft of built-up area and Rs 3,000 crore, respectively.

This was the sixth such project acquired by Suntek Realty since the pandemic. It has acquired projects in multiple locations, including Borivali, Vasai, Shahad-Kalyan, Vasind, Pen-Khopoli totalling 25.5 million sq ft, the largest by any developer.

“The real estate sector is witnessing consolidation both at the demand and supply end,” said Abhishek Lodha, MD and CEO, Lodha Group. “We have tied up 14 new land parcels through joint development pacts between March 2021 and June 2022, and the development potential is around 14 million sq ft worth nearly Rs 21,000 crore.”

According to him, homebuyers are willing to transact with branded developers with proven execution capabilities and can be trusted on quality and timely delivery.

Apart from Lodha and Sunteck, Godrej properties  Prestige Properties  and Houseliv Realty  have also been leading the consolidation drive with several outright acquisitions, forming joint ventures, and entering into development management agreements.

Godrej Properties has acquired 12 projects with a development potential of nearly 16.2 million sq ft in the last two years. The company has been leveraging its brand and financial position to tap consolidation opportunities “The average size of the project to be added to the portfolio will probably be 1.5 to 2 million sq ft,” Pirojsha Godrej, executive chairman, Godrej Properties, told ET in May. “But it can vary depending on location and opportunity... A lot of our new projects are in such areas where our economic interest is higher.”
The developer has also been raising funds to drive consolidation with the use of additional capital and to significantly strengthen its development portfolio. Currently, it has a war chest of $1 billion to support its growth plans.
Ratings agency India Ratings & Research expects grade I players to register double-digit, on-year sales growth of around 15% in FY23. It has maintained the outlook on the sector as improving. However, while the outlook is positive for grade 1 companies, it’s negative for non-grade 1 developers, and this is expected to continue.

The formalisation of the sector, led by a raft of policy reforms, is driving fringe players to partner with grade 1 developers for project execution and sales as they command the market. Large real estate developers are also exploring partnerships for synergies in terms of sales, liquidity, branding and business development.

Top real Estate  developers are expected to double their sales over the next three-four years, driven by robust demand, increasing affordability and industry consolidation, CLSA said in a recent report on India’s property industry.

Bangalore Real Estate , Houseliv Realty

Planning to buy a house? Is festive season a good time to invest in real estate @Houseliv

Are you planning to move to your own house or buy a second one? Many homebuyers consider the festive season an auspicious time to buy a house. Real estate as an investment asset class has innumerable benefits if the right location, right developer and the design element are chosen. The festive season of Dussehra and Diwali is considered auspicious for making investments. Livemint spoke to Real Estate Market Expert experts regarding the good time to buy a second house

Houseliv said buying properties during the Festival Season is mostly driven by three reasons: a) It is seen as an auspicious time to invest in something valuable; b) It is also a time when new building projects are launched; c) Real estate developers are known to roll out interesting offers and schemes to attract buyers to their projects. 

But the biggest factor driving people to buy homes today is their experience during the Covid-19 pandemic and lockdown. It has made people rethink their priorities, and thus owning a home has gained importance as it spells comfort and security, added Houseliv Realty.

Buying second home makes sense right now as developers give discounts and other exciting offers during the festive season.

Maharashtra, already the second home markets in Panvel, Alibaug, Lonavala, etc. start witnessing momentous shift in demand with the Ganpati festival. 

Meanwhile, other prominent markets such as Goa, Sindhudurg & Konkan, Nainital, Dehradun, etc. are also enjoying robust demand.  In South markets like Ooty, Nandihills, Bannerghata, Bengaluru, etc are also witnessing pickup in demand.

Houseliv Realty 

Overall the market for gated villas, second homes, farmhouses etc. are growing at a scorching pace.

“Developers and/or Financial Institutions work in tandem to come up with irresistible deals and offers that aid a lot of fence-sitters to close the deal as well as capitalize on the high demand to speed up sales. For the buyer, it becomes imperative that the objective of the investment is clear, as to whether the investment is for recurring rentals, appreciation, vacation stay or retirement home," 

real estate sector has made a tremendous comeback after the pandemic. This trend seems to continue gaining momentum during the upcoming festive season when buyers tend to invest in properties because it is considered to be an auspicious period for home buying.

Real Estate Property Site Bengaluru

MAJOR INFRA PUSH IN MYSURU ROAD BENGALURU

 

Metro Rail Corporation Limited (BMRCL) is now working to extend the metro network to Challaghatta. Metro officials said that the train, which is now terminating at Kengeri, is likely to get an extension till Challaghatta in January. Challaghatta will also get a Metro depot. Kengeri railway station is a part of the suburban railway network. Hence, in the future, it will be a combination of the metro and suburban train that will drive connectivity and be a boon to the realty sector.

This is because people want to buy plots in areas where there is good infrastructure. Besides trains, the Expressway between Bengaluru to Mysuru will also ease travel.

Houseliv Realty

The area is also getting the city’s second longest flyover which will ensure that traffic between Panchamukhi Ganesha temple and Kumbalgodu is avoided.

Experts say that there are a number of factors that are leading to an increase in demand for rental housing in Bengaluru. Amarendra Sahu, Co-founder and CEO at NestAway Technologies, said, “One of the primary reasons for the increase in demand is the reopening of schools and offices. Bengaluru is also experiencing a tremendous influx of residents, which can mostly be divided into two segments.

One segment consists of former residents who returned home because of the pandemic in 2020 and 2021. The other segment consists of those migrating to the city for the first time. This ‘dual migration’ consists of young professionals, students, artists, and young families flooding the market with new tenants looking for rental accommodation.

Sahu also said that the IT sector has contributed a lot to the growth of the city by attracting huge investments - both from within the country and overseas. The appeal of thousands of job opportunities with blue-chip companies from all over the world has led to a surge in the number of people opting to move to Bengaluru. “Bengaluru real estate definitely has benefitted from the large IT office clusters across the city.

Bengaluru Properties

These office hubs create a demand for rental housing and lucrative income opportunities for homeowners in these neighbouring residential areas. Many homeowners have invested in upcoming realty projects here in lieu of renting them to young professionals migrating to the city to work in the IT sector,” he said. He further commented that the demand in the city is high because everyone can happily coexist despite their roots.

Bengaluru Real Estate Portal

How To Choose The Right Commercial Real Estate Broker

What is a Commercial Real Estate Broker?

A commercial real estate broker is a middleman between sellers and buyers of commercial real estate, who helps clients sell, Lease or purchase commercial real estate. A commercial real estate broker can work as an independent agent, an employer of commercial real estate agents, or as a member of a commercial real estate brokerage firm.

The primary difference between a commercial real estate broker and a commercial real estate agent is that the former can work independently while the latter does not. A commercial real estate agent must be employed by a licensed broker.

A property is classified as commercial Real Estate  when it is only used for the purpose of conducting business. Typically, commercial real estate is owned by an investor who collects rent from each business that operates from that property. Examples of commercial real estate include office space, strip malls, hotels, convenience stores, and restaurants. Sometimes, commercial real estate is also owner-occupied, meaning the business that operates at the site is also the owner.

Qualifications for Becoming a Commercial Real Estate Broker

Educational Requirements

The basic requirement for becoming a commercial real estate broker is a high school diploma (or an equivalent educational qualification). Most successful commercial real estate agents/brokers have an undergraduate or graduate degree in business, statistics, finance, economics, or real estate (with a special focus on the sale or lease of commercial property).

Legal Requirements

A commercial real estate broker is a real estate professional who has continued their education beyond the level of a commercial real estate agent. To be certified as a commercial real estate broker, an individual must obtain a state license in each state that they want to practice their profession in. An individual must pass the commercial real estate broker exam in order to obtain the certification and a state license. (Note: A commercial real estate license is separate from a real estate agent license).

The following steps must be undertaken for an individual to be eligible to take the commercial real estate broker exam:

• The individual must be employed with a firm for at least one to three years (varies by state)
• Next, they are required to take 60-90 hours of state-approved licensing courses.
• After the completion of the state-approved licensing courses, the individual is then eligible to take the exam. As part of the exam, applicants are often quizzed about prevailing federal and state laws in the commercial real estate industry.

Those who pass the exam are certified as commercial real estate brokers. To continue holding the license, a commercial real estate broker must take relevant continuing education courses every two to four years (again, the specific requirements vary from state to state – if you operate in multiple states, you should go by the requirements of the strictest state). Popular and helpful continuing education courses include mortgage loan brokering, real estate appraisal, and real estate law.

Compensation of a Commercial Real Estate Broker

The income of a commercial real estate broker is based on the commissions generated by sales. The listing agreement (a contract between the listing broker and the seller, specifying details of the listing) states the broker’s commission. The brokerage commission for commercial real estate is negotiable and, on average, is about 6% of the final sale price. If the property is being leased rather than sold, then the brokerage fee is decided on the basis of square footage and net rental income.

Usually, the commission is paid by the seller, from the sale proceeds, unless the seller and buyer negotiate a split (Note: the seller often factors the commission into the asking price). The commission is paid once the deal is closed. The commission is split between the buying broker and the selling/listing broker.

However, if the broker is not working independently, the commission is split four ways. First, the commission is split and credited with the buying broker and listing broker. Each broker then takes their broker fee/commission and, out of that, pays the appropriate agent their commission, which is typically a flat fee per deal executed.

The following expenses must be taken into account when setting the brokerage commission:

• Association fees
• Licensing fees
• Advertising and marketing costs
• Multiple Listing Service (MLS) fees

A credible reputation, repeat business, a strong local Economy, and high-priced sales result in higher commissions for commercial real estate brokers.

Advantages of Hiring a Commercial Real Estate Broker

A commercial real estate broker can help prospective clients save time and money by carrying out the following functions:

• Building a network in the target community: In each area that a commercial real estate broker intends to work in, they create a network with important members of the concerned community. This ensures that they have a first mover’s advantage every time a property is up for sale or when a prospective buyer emerges in the community.
• Understanding tax and zoning laws: Many individuals refrain from investing in commercial real estate because of the large number of complex rules and regulations governing the taxation and purchase of commercial property. This complexity is compounded by the fact that these rules and regulations vary across states, industries, and zones. A commercial real estate broker must have an excellent understanding of tax and zoning laws to complete the aforementioned formalities on their client’s behalf and, thus, remove a barrier to investment in commercial real estate.
• Evaluating business plans: A commercial real estate broker evaluates their clients’ business plans to determine their feasibility. They often use statistical analysis (such as break-even analysis) to determine the basic margin of safety on a client’s investment.
• Negotiating with clients: Commercial real estate brokers have to be excellent negotiators and mediators because, unlike residential real estate brokers, commercial real estate brokers often have to deal with more than two parties when arranging the sale or lease of a property. The various parties often have conflicting incentives, which a commercial real estate agent helps align through negotiations. A commercial real estate broker must have excellent communication and persuasion skills to successfully navigate negotiations.
• Conducting research: Often, the success of a client’s business depends on local conditions. A commercial real estate broker has to provide prospective buyers of commercial real estate with research regarding local demographics, businesses, environmental quality, property maintenance costs, and the desirability of the location of the property.
• Analyzing lease payments: A commercial real estate broker researches and analyzes trends in lease  payments for commercial real estate in the area in which she/he operates. There are four basic types of commercial real estate leases:
1. Single net lease: Under this lease, property tax is paid by the tenant.
2. Double-net (NN) lease: Under this lease, property tax and insurance are paid by the tenant.
3. Triple-net (NNN) lease: Under this lease, property tax, insurance, and maintenance are paid by the tenant.
4. Gross lease: Under this lease, property tax, insurance, and maintenance is paid by the landlord. The tenant only pays rent.

Larger tenants usually enter into longer leases, which provides security to the landlord as a steady stream of rental income is ensured. (For example, a company such as Amazon is unlikely to lease office or warehousing space that it plans to occupy for only one year.) However, lease rents can be adjusted in a more flexible manner under a shorter lease term.

To learn more about reading a Commercial lease,

Disadvantages of Hiring a Commercial Real Estate Broker

Under some circumstances, a commercial real estate broker may show a client only those properties where the commission is high, advise a client to make a deal paying rent higher than necessary, or rush the client through the process in order to maximize the number of deals that he/she can make. To counter such behavior, the client can enter a contract with the broker in which the latter is paid a flat fee as opposed to a commission.

Common Metrics Used by Commercial Real Estate Brokers

Gross Rental Yield: Gross rental yield expresses rental income as a percentage of the value of the property before taxes and other expenses are deducted. It is calculated as follows:

Gross Rental Yield = (Annual Rental Income/Cost of Property) x 100

Commercial real estate results in an average yield of 7%-7.5%, as opposed to residential real estate which results in an average yield of 4%–5%. This is a popular metric for comparing commercial real estate properties which are going to be rented/ leased out.

Capital Gain/Total Return on Investment: Capital gain refers to the profit made by selling a property. It is calculated as follows:

Total Return on Investment = {(Gain from Investment – Expense of Investment)/ Expense of Investment)} x 100

This is a popular metric for comparing commercial real estate properties which are going to be sold. Investment in commercial real estate which provides a wide scope for improvement and/or expansion is ideal for earning capital gains.

However, it is important to note that there exists an inverse relationship between gross rental yield and capital gain/total return on investment.

HOUSELIV REALTY

Impact of China’s realty market on the Indian real estate

Investors in China are looking at the Indian market as it is emerging rapidly. This will in turn have a positive impact on the Indian real estate market. It is bound to have further growth as well. Increased consumer spending largely assists urbanisation with more focus on infrastructure. This paves way for demand for both residential and commercial properties. 

The Indian realty market is comparatively going strong. This is corroborated by facts. According to reliable reports, India is the second largest country for steel production after China. The collapse in the Chinese property market will also reduce commodity prices which will eventually benefit India. The Indian real estate market has a great opportunity at its doorstep since it has grown rapidly and has proven resilient in the last two years despite the global crisis. 

Ever since the pandemic, work-from-home opportunities have become a norm, the need for a roof over the head became more evident. Add to that the income levels are on the rise consistently. This will lead to an increase in domestic demand. Also, huge investments in infrastructure and rapid urbanisation are all leading to an increase in demand for buying homes. 

This is happening due to the reforms in the real estate sector. Post the pandemic, it was observed that the rates have been raised on high-end and luxury properties from individuals and Non-Resident Indians (NRI) having a much higher net-worth. Their purchasing power is probably connected to the nosedive of rupee value.

The urbanisation factor

While the Real Estate Market in India seems confident, it is significant to find the right balance between growth and sustainability, and know the difference between the two. The government has also taken note and are taking necessary measures to maintain equilibrium. The government’s focus on building highways and other infrastructure is leading to urbanisation. The increase in consumer spending has created a demand for both housing and commercial real estate in India. The government is also boosting the affordable housing segment that will give a fillip to the market sentiments and at the same time appeal to the affordable home category which has been in high demand for a while now. This will help in improving the market condition within a few years. To put it in a nutshell, as of now, the Indian realty sector appears to have a solid foothold. With these results, it seems unlikely that the industry is in, or headed for, a crisis. Having said that, a lot depends on the continuous upward progression of the Indian economy. The basic takeaway from the Chinese crisis is that Indian developers should reconsider business strategies to make the industry stronger by taking all the financial risks into consideration so that Indian realty markets can avoid China-like situations.

Houseliv Realty

Bangalore Real Estate

Nilekani family trust buys property in Bengaluru’s ‘Billionaire Street’ for Rs 59 crore.

NRJN Family Trust established by Nandan M Nilekani, co-founder and chairman of Infosys has bought a property in Bengaluru’s Billionaire Street Koramangala area for Rs 59 crore, documents accessed by Zapkey showed.

The property has a total built-up area of 4,200 sq ft and is situated on the 3rd Block of Koramangala Extension. The plot area is around 9,600 sq ft, the sale deed showed.

The NRJN Family Trust was represented by its corporate trustee Entrust Family Office Legal and Trusteeship Services Pvt Ltd. The deal was registered on September 26, 2022.

Nilekani and Rajmohan Krishnan, the authorised signatory on the sale deed, did not respond to queries sent by Moneycontrol.

In April this year, the NRJN Family Trust had bought a property for Rs 58 crore in the same area. The property was spread over 9,600 square feet and has a built-up area of 3,082 sq. ft.

Real estate brokers said that this is perhaps the most expensive deal in the area and that it is the prime location and the gentry residing in that area that makes it popular.

In May this year, the owner of Shankara Building Products Ltd,  Sukumar Srinivasan, bought two properties in Bengaluru’s posh Koramangala area for Rs 44.60 crore. Srinivas on March 21, 2022, offloaded over 10 lakh shares of the company for Rs 75 crore through an open market transaction. According to the block deal data on NSE, he had sold 10 lakh shares at an average price of Rs 755 apiece. This took the total deal value to Rs 75.50 crore.

Given the limited supply of plots and independent houses in this block in Koramangala, it has high demand from ultra-high net worth individuals, said real estate experts.

The trust is owned by Nilekani and his family. Nilekani was estimated by Forbes to have a net worth of $3 billion.

Koramangala’s 3rd Block is considered to be one of the richest enclaves in India’s IT capital, which is home to tech giants such as Infosys and Wipro, apart from startups.

Some of the country’s most successful entrepreneurs have homes in Koramangala 3rd Block, according to local brokers. Among them are Devi Prasad Shetty of Narayana Health and Flipkart founders Sachin Bansal and Binny Bansal.

Of the six blocks in the area, the 3rd Block is the most expensive because of the larger plot sizes and the fact that it is inhabited by billionaires, brokers said. Bungalows that are spread across 4,000 sq. ft. command a price of just about Rs 25,000 per sq. ft., they said.

In January,  Sriram Nadathur, son of Infosys co-founder NS Raghavan, sold a residential property in Koramangala 3rd Block for Rs 11.6 crore.

In August last year, Infosys co-founder Kris Gopalakrishnan bought two properties worth Rs 76 crore in the area.

The promoter of Bengaluru -based Quees Corp ought a bungalow spread across 9,507 sq. ft. in the Koramangala area for Rs 52 crore last year. Ajit Abraham Isaac bought the property from Brijesh R Wahi, a Singapore-based NRI. The cost of the property located in Koramangala Extension worked out to about Rs 58,000 per sq. ft.

Flipkart founder Sachin Bansal utilised the proceeds from the sale of his stake in the company to buy a 10,000 sq. ft. property in this area at the rate of Rs 45,000 per sq. ft. He had bought a property in the area for Rs 25,000 per sq. ft. in 2016.

Anesh Shetty, son of Narayana Health chairman Shetty, purchased an independent house worth Rs 18.57 crore in Koramangala in January last year.

Other high-profile deals in Koramangala in the past couple of years, as per documents accessed by Zapkey include those by NRJN Family Trust (Rs 39.8 crore in December 2019), Raja Bagmane (Rs 43.2 crore in November 2019), and Nilekani’s daughter Jhanavi (Rs 30 crore in December 2019).

Prestige Kingfisher Towers in Ashok Nagar witnessed some of the priciest property deals in Bengaluru, brokers in the area said.

In June 2020, Sudha Murthy, Sudha Murthy wife of Infosys founder NR Narayana Murthy, bought a property in this project for Rs 28 crore, according to documents shared by Zapkey.

Wait for basic amenities gets longer for Nada Prabhu Kempe Gowda Layout site allottees

Six years after securing site allotment at the Nada Prabhu KempeGowda Layout (NPKL), buyers are still waiting for basic amenities to begin constructing houses.

The month-on-month progress report given by the Bangalore Development Authority (BDA) has revealed that works at the layout has been stalling for months together.

Data accessed by DH revealed that not even a two-kilometre road has been constructed since May, while drains are built over a three-kilometre stretch in a layout sprawling over 2,650 acres.

“We hardly see any progress, and this has been the case for the last one-and-a-half years. This is a direct impact of the BDA’s inability to accurately assess and release funds to the contractors, according to the works taken up,” said A S Suryakiran from the Nadaprabhu Kempegowda Layout (NPKL) Open Forum.

Problems began two years ago following estimations by the contractor and the BDA engineers that the layout needs more funds to complete infrastructure works. A variation quantity of Rs 650 crore was estimated and a proposal was placed before the BDA board for approval.

“The works will not gather momentum without the approval of the variation quantity. Though the BDA’s internal technical review committee approved the variation, the assessment was further passed to a third-party company, which is yet to submit a final report even after seven months of survey,” Suryakiran added.

BDA officials, on the other hand, said the project was stalled due to Heavy Rains and continuous festivals.

“Though the variation quantity is still under discussion, contractors have been asked to proceed with the work planned according to the initial estimation,” said a senior BDA official.

“We have received initial report from the third party on the assessment. Once we receive the final report, the variation quantity will be released accordingly,” the official added.

Though the site allottees have approached the Real Estate Regulatory Authority (RERA) and the petition committee of the Assembly, work on the ground is yet to gather pace..

1Lakhs housing units remain unsold in Hyderabad Houseliv

HYDERABAD: With the realty sector turning expensive, many housing units are left unsold in Hyderabad.

The State capital has nearly one lakh unsold housing stock, which is the highest in south India.
According to a report by PropTiger, REA India-owned digital real estate transaction and advisory services platform, the unsold stock as of Q3 2022 stand at 99,090.

The city has an unsold inventory of 40 months and this is the second highest overhang among all cities after Delhi (62 months overhang). During Q2, the unsold stock was 82,000, which has now inched closer to one lakh in Q3.

Across the country, the overall unsold inventory in Q3 2022 stood at 7.85 lakh units, with Mumbai on top with 2.72 lakh units. There has been a decline in the inventory overhang in a few cities as the builders in a particular market are likely to take to sell off their unsold stock at the existing sales velocity.

 The realtors attributed the increase in unsold inventory to the rising cost of construction, registration charges and land rates to have gone up. This increased the cost of under-construction apartments and to-be-built houses. On the other hand, launches have been more in Hyderabad which is also one of the reasons for the high unsold inventory.

In Q3 2022, a total of 27,440 Housing units were launched, the second highest in the country after Mumbai (28,880 units). However, the sales are not able to match the launches as 10,570 housing units were sold in Q3.

The markets covered in the report include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region and Pune. Meanwhile, with the festive season in full swing, real estate developers are hopeful of the sector receiving a boost towards recovery, and their wishes are already coming true.

“The real estate industry is bouncing back from the pandemic and subsequent disruptions, and it’s evident from the data trends and insights in our report. Especially with the festive season which has just commenced, we’re experiencing a continuous surge in consumers’ positive sentiments towards property investments,” said Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com, Houseliv.com  and Makaan.com.